Correlation Between Aba Chemicals and Shanghai Ziyan
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By analyzing existing cross correlation between Aba Chemicals Corp and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Aba Chemicals and Shanghai Ziyan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aba Chemicals with a short position of Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Shanghai Ziyan.
Diversification Opportunities for Aba Chemicals and Shanghai Ziyan
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aba and Shanghai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods and Aba Chemicals is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aba Chemicals Corp are associated (or correlated) with Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Aba Chemicals and Shanghai Ziyan
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.01 times more return on investment than Shanghai Ziyan. However, Aba Chemicals is 1.01 times more volatile than Shanghai Ziyan Foods. It trades about -0.1 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.2 per unit of risk. If you would invest 644.00 in Aba Chemicals Corp on November 4, 2024 and sell it today you would lose (29.00) from holding Aba Chemicals Corp or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Aba Chemicals Corp |
| Shanghai Ziyan Foods |
Aba Chemicals and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Shanghai Ziyan
The main advantage of trading using opposite Aba Chemicals and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Shanghai Ziyan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.| Aba Chemicals vs. Tongyu Communication | Aba Chemicals vs. Eyebright Medical Technology | Aba Chemicals vs. China Sports Industry | Aba Chemicals vs. Fujian Newland Computer |
| Shanghai Ziyan vs. Xiandai Investment Co | Shanghai Ziyan vs. Henan Shuanghui Investment | Shanghai Ziyan vs. Shenyang Huitian Thermal | Shanghai Ziyan vs. Shenzhen Centralcon Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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